EEF's weekly briefing on the issues affecting manufacturers.
Week in review
Success for EEF on Carbon Reduction Commitment
The government has agreed to reduce the initial cashflow requirements of the forthcoming Carbon Reduction Commitment, following a campaign by EEF. In a u-turn, the government has announced that companies will only have to make payments in the second year of the scheme, not the first as originally planned. Taking on another EEF proposal, guidance will also be published earlier than expected, allowing companies longer to prepare for the scheme.
For further information contact Amisha Patel, Climate and Environment Adviser
Treasury Minister briefed on Pre-Budget priorities
We continue to make the case across government for a stable business environment for manufacturers as the economy moves from recession to recovery. This week, we met Economic Secretary, Ian Pearson, to discuss the state of manufacturing and EEF’s Pre-Budget recommendations.
For further information contact Lee Hopley, Head of Economic Policy
EEF takes manufacturing debate to Conservative Conference
Conservative Shadow Treasury Minister, David Gauke MP, joined high-profile economist Professor Patrick Minford and our own Steve Radley at EEF’s fringe event at the Conservative Party Conference in Manchester this week. The debate was enlivened by questions from a number of EEF members in the audience and was part of our wider campaign to highlight the importance of manufacturing.
For further information contact Jennifer Huckstep, External Affairs Adviser
Business Minister urged to prioritise measures for economic growth
As part of a group that briefs the government on the state of the economy, EEF this week highlighted our key policy priorities to Pat McFadden MP, the Business Minister. We argued that government’s main priorities for promoting economic recovery should be easing the tax and regulatory burden on business, investment in skills, and taking active steps towards creating a better balanced economy.
For further information contact Steve Radley, Chief Economist
Assurances sought on new environmental civil sanction powers
We have urged the Environment Agency to be proportionate in administering proposed new civil sanction powers on business. We have been assured that the powers would only be invoked where repeated non-compliances were recorded and where prosecution through the courts was considered unnecessary.
For more information contact Kevin Considine, Senior Climate & Environment Policy Adviser
Agency Workers Directive campaign continues
We continue to lobbying for a delay to the Agency Workers Directive. Meeting government officials this week, we were informed that draft regulations are imminent and will include a proposed implementation date. We are concerned that introducing this proposal during the current economic climate will discourage companies from taking on agency workers at the very time when demand could be picking up.
For further information contact David Yeandle, Head of Employment Policy
In the news...
On Monday our Innovation Report featured in the FT. Manufacturing Output figures released on Tuesday underlined our view that the recovery is going to be a difficult one and we were quoted in the FT , Guardian and Daily Telegraph.
The Conservative Party Conference was the big story of the week and we were asked to comment on the Conservative Party’s policies for manufacturing. Finally our Head of Employment Policy David Yeandle took part in a live blog during David Cameron’s speech for Personnel Today.
Weekly Focus:
From Waste to Resources - what next for government strategy on waste?
EEF has called on the government to rethink its waste strategy to reduce costs to manufacturers.
The handling of waste is a significant cost to UK manufacturers and a key environmental issue. Sustainable waste management and resource efficiency is therefore an important part of successful business models. Over 95% of respondents to a recent EEF survey cited managing waste as a key priority for action.
In a policy paper, published today, we evaluate the government’s progress in delivering its two year old waste strategy. We focus on the key challenges and opportunities for UK manufacturers from current government policy and make a number of recommendations for improving the strategy and delivery of policy objectives to reduce costs to manufacturers. In doing, so we argue for a shift in thinking from waste as a problem to a valuable resource, as well as a more outcome-based and strategic approach across waste and resources policies.
Economic Data
Latest economic indicators
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↑ Manufacturing output |
Manufacturing output fell by 1.9% between July and August. |
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↑ Trade |
The goods trade deficit narrowed to £6.2bn in August, compared with £6.4bn in July. |
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↑ Services PMI |
The services PMI rose for the third consecutive month in September, climbing to 55.3. |
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↑ New car sales |
New car sales were 11.4% higher than a year ago in September. |
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↑ House prices |
The Halifax house price index showed house prices were 1.6% higher in September than in August. House prices have risen in four of the past five months. |
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↑↓ Producer prices |
Annual output price inflation rose to 1.4% in September, up from 0.8% in August. Annual input prices were 6.5% lower than a year ago. |
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MPC meeting |
The MPC voted to hold interest rates at 0.5% and continue with its £175bn asset purchase programme . The programme is likely to take another month to complete. |
Coming up...
Forthcoming data and statistics
13 October: Inflation figures, ONS; House Price Survey, RICS
14 October: Labour market statistics ONS
15 October: EEF Pay Bulletin
Forthcoming events...
EEF’s manufacturing debate - 'Can manufacturing save the UK economy?' - will be hosted by the BBC’s Stephanie Flanders.
Join an audience of manufacturers and policymakers as we discuss the future of our industry.
6pm - 9pm, 21 October 2009
The Royal Society, 6-9 Carlton House Terrace, London SW1Y 5AG
Register now for your free place at the debate
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